I'm so sad, LOF 1 and inheritance are my favorite horror exploration games to date. The story is gripping and pushes you through the maze & puzzles at a nice pace.
LOF2 is missing almost everything that made the first one a good game.
The story is incredibly disjointed and doesn't really progress the game play at all, the writing is good but the structure of the story lacks coherence.
The set design is incredibly flat, since so many sequences are in sepia tone for some reason. I feel like keeping the gradual decay of your surroundings from the first one would have made all the difference in the ambience, which this one lacked completely.
LOF2 isn't scary at all, mostly because of the lack of ambience, and also because nothing really scary happens in the story. The demon chase sequences are more annoying than anything, and doesn't fit into the game at all.
Last but not least, the controls. I don't know if they PC version handles better, but the controls make navigating the cluttered level design and getting away from the demons pretty much the 'scariest' part of the game, because they're so bad. It handles exactly like the first one, which was fine for the progression of LOF1, in LOF2 the clumsy controls make the game more tedious than enjoyable.
I've replayed the first one so many times, I won't bother replaying the second one. They should have just made it a stand alone game since it has nothing at all to do with the first one.